The Sri Lankan rupee was a tad firmer today as exporter dollar sales outpaced importer demand for the greenback while dealers expect the local currency to remain steady for the rest of the year after positive comments by the central bank chief last week.

Central bank Governor Ajith Nivard Cabraal said last week the banking regulator would intervene in the thinly-traded market whenever needed to keep the rupee stable.

The rupee was trading at 130.18/20 per dollar at 0540 GMT, slightly up from Tuesday's close of 130.20/22.

"Rupee is trading firmer, there are more exporter conversions than the import bills," a currency dealer said.

Foreign investors bought a net 1.81 billion rupees ($13.9 million) worth of government securities in the week ended August 20, official data showed.

The People's Bank of China on Monday said it would allow the central bank of Sri Lanka to invest in the country's interbank bond market.

Sri Lanka's central bank in a statement said the agreement with the People's Bank of China will enable the bank to further diversify its reserves management activities into Chinese renminbi-denominated assets.